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Guangzhou Automobile Group (601238) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 53.5B CNY

GA Guangzhou Automobile Group 601238 · SHG
Price¥5.25
Fair Value¥2.69
Upside-48.8%
Quality33/100
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Expensive Growth
Loss-making · -9.0% net margin
Low debt · negative free cash flow
Trails peers (3/11)
Narrow moat 6/100
Evidence: Low Range ¥1.28 – ¥4.45 Share as image

Fair value as of: Aug 8, 2026

From 3 valuation models · updated today

Fair value updated Aug 8, 2026, revised from ¥0.4300 to ¥2.69 (+525.6%) since Jul 5, 2026. Share price +2.3% over the past month.

Below-average quality, and screening another 49% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥4.45). The favourable scenario is already priced in.
  • Weak quality (33/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The model range is unusually wide (¥1.28 to ¥4.45). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

¥19.67 ¥4.89 Fair Value ¥2.69 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 8, 2026.

How to read this chart

60‑month range ¥4.89 – ¥19.67 · fair‑value band ¥1.28 – ¥4.45 · the ¥5.25 price screens above the ¥2.69 fair value. Dashed = 300-day average. As of Aug 8, 2026.

Full chart & analysis →

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Analysis

Guangzhou Automobile Group (601238) currently trades at ¥5.25, while our model-based Fair Value estimate is ¥2.69, implying the stock looks roughly 48.8% overvalued today. We read business quality at 33/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, Guangzhou Automobile Group generated revenue of 96.9B CNY at a net margin of -9.0%. Revenue grew 1.8% year over year. It earns a return on equity of -10.1%. Net debt stands at 7.2B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥1.28 (bear case) to ¥4.45 (bull case); at ¥5.25, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 45% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 25% fair-value upside, at -49%, 601238 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Gordon GGM ¥1.27 ¥2.69 ¥4.25 70
DDM Multi-Stage ¥1.27 ¥2.27 ¥2.76 61
NCAV (Graham) ¥36.03 ¥48.28 ¥72.06 50
All 3 models by family
Dividend Discount
Gordon GGM ¥1.27 ¥2.69 ¥4.25 70
DDM Multi-Stage ¥1.27 ¥2.27 ¥2.76 61
Asset-Based
NCAV (Graham) ¥36.03 ¥48.28 ¥72.06 50

Widest divergence: Asset-Based (¥48.28) versus Dividend Discount (¥2.27). Highest evidence: Gordon GGM (70).

Key figures & financial health

Revenue (TTM) 96.9B CNY
Revenue growth (YoY) +1.8%
Net margin -9.0%
Return on equity -10.1%
Free cash flow −19.2B CNY FY2025
Operating margin -13.7%
More key figures
EPS (TTM) ¥-0.8400
EPS growth (YoY) -80.3%
Net debt 7.2B CNY FY2025

Figures from reported company fundamentals · as of Aug 8, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 33/100

Of which business quality 36 · Market factors (momentum, volatility) 30

Profitability 6
Margins and returns on capital today
Quality Growth 9
Are margins and returns improving?
Cashflow 15
Earnings quality: real cash, not paper profit
Fin. Strength 54
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 7
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Guangzhou Automobile Group Co., Ltd., together with its subsidiaries, research, develops, manufactures, and sells vehicles and motorcycles, and parts and components in Mainland China and internationally. It operates through Vehicles and Related Operations; and Others segments.

Full company description

Guangzhou Automobile Group Co., Ltd., together with its subsidiaries, research, develops, manufactures, and sells vehicles and motorcycles, and parts and components in Mainland China and internationally. It operates through Vehicles and Related Operations; and Others segments. The company produces and sells passenger vehicles comprising sedans, SUVs, and MPVs; commercial vehicles consisting of fuel-powered and new energy heavy-duty trucks, new energy light-duty trucks, new energy buses, and pickup trucks; automotive parts, such as engines, gearboxes, car seats, micro motors, shifters, power batteries, battery cells and electric drives and controllers, and interior and exterior decorations; and motorcycles, including sport bikes, scooters, and electric bicycles and motorcycles. It also offers logistics, second-hand vehicle, supporting, and mobility transportation services. In addition, the company provides automobile credit, insurance brokerage, financial investment, finance lease, and other financing services. Further, it trades in automobiles, automotive parts, and steel. The company was incorporated in 1997 and is headquartered in Guangzhou, the People's Republic of China. Guangzhou Automobile Group Co., Ltd. operates as a subsidiary of Guangzhou Automobile Industry Group Co. Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Guangzhou Automobile Group reported revenue of ¥94.7B in FY2025 versus ¥75.7B in FY2021, a compound +5.8%/yr. Reported net income was −¥8.8B in FY2025.

Growth Quality 25/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
94.7B CNY
Latest YoY
−12.1%
Avg. growth/yr (3Y)
−4.9%
Avg. growth/yr (5Y)
+8.4%
Avg. growth/yr (21Y)
+7.9%
Revenue +5.8%/yr
FY21 ¥75.7B
FY22 ¥110B
FY23 ¥130B
FY24 ¥108B
FY25 ¥94.7B
Net income
FY21 ¥7.3B
FY22 ¥8.1B
FY23 ¥4.4B
FY24 ¥824M
FY25 −¥8.8B

601238 screens 49% overvalued. Compare with Toyota Motor Corporation →

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Cite: Fair Value Calculator (2026). "Guangzhou Automobile Group Fair Value". https://www.fairvalue-calculator.com/stock/601238

Peer Group

Auto Manufacturers · 118 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 33 · Bottom 25%
Return on assets -4% · Bottom 25%
Net margin (TTM) -9% · Bottom 25%
Operating margin (TTM) -14% · Bottom 25%
Revenue growth 2% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.09× · Lower than median

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/B 0.08× · Cheaper than 75% of peers
P/S (TTM) 0.09× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 27
FUTURE 9 · sector 33
PAST 0 · sector 18
HEALTH 96 · sector 94
DIVIDEND 0 · sector 44

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
Toyota Motor Corporation TM $179.76 $224.63 +25%
BYD Company 81211 HK$80.55 HK$50.85 -37%
Hyundai Motor Company 005380 425,000 KRW 616,918 KRW +45%
General Motors Company GM $77.72 $56.93 -27%
Bayerische Motoren Werke Aktiengesellschaft BMWM5N 1,909 MXN 2,944 MXN +54%
Ferrari N.V RACE $376.64 $228.05 -39%
Ford Motor Company F C$11.86 C$4.00 -66%
Mercedes-Benz Group BENZ C$20.44 C$35.15 +72%
Volkswagen AG VOW 2,149 CZK 7,191 CZK +235%
Maruti Suzuki India Limited MARUTI ₹13,803 ₹8,236 -40%

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Frequently asked questions

Is Guangzhou Automobile Group (601238) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥2.69 versus a price of ¥5.25, about −49% (overvalued).
What is the fair value of 601238?
Our model-based fair value for Guangzhou Automobile Group is ¥2.69 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥5.25.
What is the quality score of 601238?
Guangzhou Automobile Group has a Quality Score of 33/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Guangzhou Automobile Group (601238)?
Guangzhou Automobile Group reported trailing-twelve-month revenue of about 96.9B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 601238?
The net profit margin of Guangzhou Automobile Group is about -9.0%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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